S&P 500 Index to see strength extending to the 4200 mark – Credit Suisse

S&P 500 above 4068 can keep the immediate risk higher for a test of test pivotal resistance from the top of its 12-year trend channel from the 2009 low at 4115. With the market already moving into “extreme” territory, economists at Credit Suisse would then be highly cautious of an interim top here. 

S&P 500 is now above the top of its “typical” extreme

“Whilst we maintain an immediate bullish stance and continue to look for the rally to extend further, ideally to our 4200 Q2 objective, we now move to a more cautious footing given the market is now in ‘extreme ‘territory. Above 4130 and we see resistance next at 4138 ahead of Fibonacci projection resistance at 4175/79. Our ‘ideal’ roadmap remains for a push to our 4200 target but we essentially now look for a top in this 4175/4200 zone.” 

“Near-term support moves to 4119, below which can see a pullback to 4108, with the price gap from Friday morning at 4097/96 needing to hold to keep the immediate risk higher. Below can see a fall back to 4068.”